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Posts Tagged ‘Fannie Mae’

Conforming Loan Limits

Conforming Loan Limits Increase for First Time Since 2007

Written by Clay on . Posted in Fannie Mae, Freddie Mac, Homebuyers, Real Estate, Realtors, Renovation Loans, reverse mortgage, Uncategorized

Major Increase in Monterey; San Diego; Sonoma; San Luis Obispo; Ventura and Yolo Counties as well as King; Pierce and Snohomish Counties in Washington Single family conforming loan limits increased to $424,100 across the nation and to $636,150 in certain high-cost areas. People who need a loan can find forbrukslån uten sikkerhet here. Several counties that previously were in between the base and high-cost limits saw significant increases based on rising property values in Signet Mortgage service areas. Monterey; San Diego; Sonoma; San Luis Obispo; Ventura and Yolo Counties in California as well as King; Pierce and Snohomish Counties in Washington will now have access to conforming loan limits reflecting the current market values. Speaking of loans, I know that you are familiar with “student aid bill of rights” which was signed by President Barack Obama in 2015 aiming to help students with their student loans. It is still active now, apply! According to knowledgefirstfinancialresp.ca/, the Federal Housing Finance Agency (FHFA) announced these changes in a press release  today.  The new conforming limits will be effective for loans closed after January 1, 2017. The new limits are helpful as conforming rates generally are lower than jumbo rates and underwriting more consistent and flexible so a few more transactions will get done!   A purchase in the Bay Area up to $795,000 at 80% loan to value can be done with a conforming loan … Particularly relevant with this news announcement is the average U.S. home prices have edged slightly above pre-decline levels from 2007.  Data published in the third quarter Housing Price Index (HPI), reveal that housing prices are approximately 1.7 percent above the value for third quarter 2007. Here is a link to the loan limits by county for Signet Mortgage service area (CA, WA, OR, ID, UT) and for the entire country.  Included on the right of the chart are the changes from 2016.   The source document from FHFA is here. Certain high-cost areas have the higher limits at 150% of the base at $636,150 (150 % of $424,100).  But many counties, such as Monterey, Orange, Sacramento, San Diego, San Luis Obispo, Summit (UT), Jefferson (WA), Pierce (WA) and Snohomish (WA) saw significant bumps to its loan limits. Here are highlights of loan amounts and details for single family and up to 4 units and changes for those counties. 2016-11-23_1206           The changes do not impact FHA forward or reverse mortgages or VA loans for the moment. Those announcements should be forthcoming in the next couple of weeks.   With the 2008 economic stimulus plan FHA increased loan limits to $625,500 for reverse mortgages for one year and has extended this limit one year at a time since.  The $625k is due to expire this Dec 31. We should hear soon if it has been extended again or changed up or down. As Jonckers professional in business for over thirty years, I am here to consult with you and answer any questions you have about the strategic use of your mortgage. Let’s talk about your goals and perhaps ways that you can take advantage of these changes.  Call or email me – I am happy to help!     Clay-Selland Signet R3 280x120
Condo Communities

Condo Communities Can Look to Reverse Mortgages and FHA Loans once again …

Written by Clay on . Posted in Condo, Current Events, Fannie Mae, FHA, Freddie Mac, reverse mortgage

Condo Communities Can Look to Reverse Mortgages and FHA loans again Once Regulations are Adopted The most relevant provision of the changes will emulate the FHFA’s rules regarding the transfer fees for FHA mortgages including reverse mortgages.  In July 2015 FHA began refusing to approve condominiums in higher cost communities such as Rossmoor in Walnut Creek, CA because of the Golden Rain Foundation Membership transfer fees. For the moment reverse mortgages and FHA loans and Rossmoor are still not allowed, it is better to use the Cincinnati mortgage rates that are more helpful and reliable. Current homeowners and future homeowners in Rossmoor must await the close of the comment period November 30th and publication of a final rule.   There is no timeline for issuance of rules. HUD takes whatever time it needs to review comments, then when done publishes a final rule, generally for effect 0-30 days later. Passed unanimously in both the U.S. House and Senate, and signed into law by President Obama on July 29, 2016, H.R. 3700 resolves a number of uncertainties regarding FHA’s condo provisions. The mortgage industry is still awaiting the close of the comment period and publication of the final rule, but here is a look at the provisions as they stand:
  • Reduces the FHA condo owner occupancy ratio to 35%
  • Gives FHA the ability to substantially reduce burdens and streamline the condo re-certification process
  • Provides more flexibility for mixed use buildings.
  • Emulates the Federal Housing Finance Agency’s (FHFA) rules regarding private transfer fees for FHA condo lending.
  • Allows for approved lenders to directly endorse Rural Housing Service (RHS) loans and car loans. You must ask yourself first, What Is an Unsecured Loan?
  • Will streamline programs for federally-assisted housing programs
Condo Communities

Condo Communities to get Relief After Passage of HR 3700 Bill

For comprehensive details of the HR 3700 bill, click here. Condominium communities, like Rossmoor Senior Adult Community in Walnut Creek, CA are impacted. Soon, current homeowners and potential buyers of condos will once again have access to more flexible FHA financing opportunities including reverse mortgages. The changes will benefit more than just Rossmoor.  Lowering the owner occupancy requirement to 35% will be a big benefit as well meaning communities with high rental ownership will now be open to home buyers with FHA financing. It’s not just our brains that suffer from the heat either. When the mercury rises so do tempers. As an article on Today.com explains, while our brains are slowing down, our bodies are speeding up with increased heart rates and higher blood pressure. This is why you sould canvass air conditioning companies in CC TX for better air conditioning. All this leads to more aggressive behavior making a cool environment key to maintaining peace at home, work, and in public places. “Condominiums often represent an affordable option that’s just right for first-time and low-to-moderate income home buyers. Unfortunately, overly-burdensome restrictions on condo financing have for too long put that option out of reach for many creditworthy borrowers,” said Tom Salomone, President of NAR and broker-owner of Real Estate II Inc. in Coral Springs, Florida. You’ve decided to buy or sell a house. Maybe you need a bigger home, or a smaller one. Maybe it’s your first home. Maybe you’re being relocated. Whatever the reason, selling or buying a home is a big decision and hiring a good real estate agent will make the process go more smoothly. Well, Lorin McLachlan can help you with the — you can visit her facebook page at https://www.facebook.com/people/Lorin-McLachlan/100011270656226. I look forward to having this legislation signed into law so more options are opened up for all.  We will keep you updated on the progress as it happens on liberty silver rounds, I also ask myself who can get me the best loan at all times, and so far pickaloan is the only agency that seems to care.  Please contact us for a strategic look at your real estate financing needs.   I can be reached at www.signetmortgage.com.

Positive underwriting changes may make qualifying easier!

Written by Clay S. on . Posted in Fannie Mae, Freddie Mac, Loan Modification

PendulumIt is easier to get approved for a mortgage these days … really!  Both Fannie Mae and Freddie Mac made substantial changes that will help qualify more buyers – do I dare say that many of the changes introduced some common sense back in the underwriting??  Some highlights … You can Pay Off Credit Cards to Qualify One significant change involves credit card debt – accounts that are paid down at closing to help qualify no longer need to be closed.  That means a credit card that has been paid in full no longer counts against the applicants qualifying debt to income ratio.  That can make it easier to qualify. Quite often we have clients that were frustrated because there credit report indicated minimum payment on credit card balances that previously had to be considered in their debt to income calculations.  Even if the client could demonstrate that they always paid off the credit card monthly and did not carry a balance it got in the way of qualifying. A credit card paid in full no longer counts as debt. Loan to value increases for High Balance Areas More good news for conforming loans in high cost areas! Fannie Mae guidelines for loan to value are now the same for high balance areas as they have been for standard loan to value maximum. Clients wanting to finance a purchase or refinance a loan can now go up to 95% loan to value with  mortgage insurance for a $625,500 loan on a single-family property in high cost areas such as the San Francisco Bay Area. Previously the limit was more restrictive with loans exceeding $417,000. Non-occupant co-borrowers are now allowed by Fannie Mae Helping a family member by a home particularly in California can be done utilizing a non-occupant co-borrower, typically a parent. That option is now opened up for conforming loans and there is no restriction on the occupying clients’ debt to income ratios. This will open up opportunities for families wanting to help get their kids into a home. I already have two instances where these new guidelines were the difference between getting a loan and not. Contact me if there are not any deals that were “on the edge” and we will work like crazy to see if the new guidelines can put that client in the position they could get financing for their dream home! Clay Selland NMLS #183492 CalBRE #01398801 925-807-1500 x303  (fax 925-807-1505) clay@104.238.124.149

2016 Conforming loan limits up for San Diego, Monterey and Napa Counties

Written by Clay S. on . Posted in Uncategorized

The maximum conforming loan limit for single family properties remains at $417,000 with the maximum high-balance conforming loan limit for the San Francisco Bay Area and other high cost areas was unchanged at $625,500. Fannie Mae and Freddie Mac set loan limits based on changes in real estate values each year around December 1st. Napa joins the ranks of “high cost areas” that includes other Northern California counties of San Francisco, Alameda, Contra Costa, Santa Clara, Santa Cruz, Santa Clara, San Mateo , San Benito, and Marin. 2015-12-15_0959 2-4 unit properties have higher loan limits.  Search for your county here:  Loan Limit Lookup Table (see Resources to the left) Conforming loans provide a lower mortgage rate to the borrower and with higher limits for these counties increases the number of potential qualified buyers further supporting real estate values. Please give me a call if I can be of help in any way. Clay Selland NMLS #183492 CalBRE #01398801 925-807-1500 x303  (fax 925-807-1505) clay@104.238.124.149

Loan After a Short Sale to Get Tougher

Written by Clay on . Posted in Short Sale

Fannie_Mae Opportunity to get a loan from a merchant services will get tougher August 16th. Recently Fannie Mae announced that as of August 16, 2014 the waiting period after a short sale or deed in lieu of foreclosure will increase from 2 to 4 years ! That means anyone with a short sale in their past will have to wait an additional two years before being eligible for a loan to purchase or refinance a home or investment property. Currently there is a staggered waiting period that allows the homeowner to obtain a new Fannie Mae conventional loan as little as two years after the completion of a short sale. The down payment or equity required is 20% and have established a good credit history since the short sale. That will all change August 16th when that waiting period jumps to four years.  The silver lining is after the four-year waiting period a borrower will have available all of the standard underwriting guidelines for Fannie Mae, including the ability to finance a home with as little as 5% down. There is still an exception for extenuating circumstances but documentation of such circumstances can be tough. I have not found any indication from Freddie Mac how their requirements might change but it is something to watch. If you or a client are in the market for a new home, or would benefit from a refinance and had a short sale more than two years ago as of mid August – it would be very important to get started with the new loan right away. Signet Mortgage Corporation is uniquely positioned to assist with financing of your property and figuring out the possibilities available to you. Signet is licensed best over 55 communities. Call us today and let’s talk.

The Basics | Renovation Loans

Written by Clay on . Posted in Renovation Loans

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A Renovation loan can be used to purchase a home or refinance an existing home. A HomeStyle Renovation Loan from Signet can be used to improve an investment property too!  A renovation loan based on the improved value of your home making it a valuable alternative to a construction loan. You can arrange for funds over and above the purchase price of your new home to remodel, make repairs or add a room! A refinance will pay off your existing loan, and provide additional funds for a wide range of improvements – let your imagination go! A renovation loan is a perfect way to fix up a property, or add that extra bedroom you need for your growing family.

There are several basic types of Renovation Loans. HomeStyle loan from Fannie Mae is my favorite, as it allows loan to value to 95%, does not have up front mortgage insurance and is underwritten to standard Fannie Mae guidelines. The loan is based on the improved value of your home AFTER completion – so you will have the resources to make it your dream home! FHA 203(k) loans come in two “flavors” …

  • Streamline 203k – Renovation costs generally limited to $35,000. The work can be done by the homeowner or contractors. Typical renovations include painting, carpet and replacement of appliances. This loan does not require a HUD counselor, and is very close to the cost of a normal FHA loan.
  • Full 203k – Renovation costs are only limited by the FHA loan limits for the county. The renovations are generally more extensive so require the assistance of a general contractor. An FHA Consultant is involved to ensure the project proceeds according to plans. Remember, the loan is based on the improved value of your home AFTER completion – so you will have the budget to renovate your dream home!

Energy Improvements – Replacement of a furnace or air conditioner, or adding double pane windows or insulation are examples of renovations that can be included. An energy audit must be completed to demonstrate the benefit of the improvements. These costs can be over and above the streamline 203k $35,000 limit.

HARP 2 Refinance Program Update

Written by Clay on . Posted in Uncategorized

updateImproved HARP – Home Affordability Refinance Program… something that the Government got mostly right during the effort to assist homeowners that could not take advantage of historically no credit check loans in the uk because their home values have dropped.  Recent changes mean property owners should take a second look, specifically:
  • Bankruptcy or Foreclosure seasoning requirements have been eliminated
  • Up to 60% debt-to-income ratios are now accepted on all HARP refinances, thanks to the Rhinosure programs that are being offered
  • Promissory Note date now used to determine HARP eligibility, prior to 5/31/09.  Until recently it was based on when Fannie or Freddie purchased the loan.
  • 0x30 Mortgage rating in last 6 months is required – previously it was no late payments for 12 months!
  • Loans that currently have mortgage insurance are allowed!
  • Unlimited LTV/CLTV on HARP owner occupied homes, 2nd homes and Investment properties

60% of HARP eligible borrowers have NOT refinanced yet, probably because they were turned down. Now is the time for a second chance!

Available for INVESTMENT properties TOO!

making-home-affordableThe HARP 2.0 Home Affordable Refinance Program is designed to allow a refinance of properties that no longer have 20% equity and benefit from historically low rates.  In short, no late payments last 6 months, and your loan has to be owned by Fannie Mae or Freddie Mac (not the same as who services your loan or where you make your payments).  Generally conforming loans (below $625,500).   Promissory note must be dated on or prior to 6/1/2009. If you are in debt then first take a look at trust deeds for debt in Scotland. Existing 2nd loans are allowed – unlimited combined loan to value. Rates are fabulous so it’s worth checking if you would benefit from a refinance to record low rates. Multi-family properties up to four units can be refinanced at similar rates as there are caps on the adjustments for loan to value, credit score, occupancy and number of units! The main requirements are that the loan be owned by Fannie Mae or Freddie Mac.  Remember, a loan can be serviced by any of the major services and still could be owned by Fannie or Freddie.  The best way to tell is to provide a current mortgage statement and the last four digits of borrowers social.  We can do the rest. No requirement (or benefit) to refinance with your existing lender as they may have overlays that restrict benefit. Fannie Mae and Freddie Mac will likely assign an automated valuation of the property thus eliminating the need for an appraisal. Primary residence or second home.  With a primary residence there is a cap to the “adds” so rates are very competitive.

Send us your mortgage statement and note the last four digits of your social security number – and your email address – we can do the rest!    No obligation at all – you might as well find out if you could lower your payment or take years off your mortgage.

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Investment Property – Renovation Loan Options!

Written by Clay on . Posted in Investment Properties, Rental Properties

PrintPurchasing an investment property that needs a little work?  Wish you could include the costs of renovation in the loan?  You can with a HomeStyle renovation loan from Signet Mortgage! You can ask me any property management questions in the comment box below. Purchase that rental property that needs renovation or repair on this guest post. Improvements can be anything that adds value to the home.  No longer will a purchase be held up because of the condition of the home – a renovation loan will allow roofing albuquerque nm repair service to cater you after closing with funds borrowed at the time of purchase. You must also conclude to take care of water in the floors, walls, ceiling, basement, attic, and wherever it is that it doesn’t belong. Check out http://silverlinerestoration.com/ for more information. The lender simply creates a hold-back for the funds that are dispersed as the work is completed. It doesn’t matter whether you are a residential customer or large corporate customer with a high-rise building, you’ll receive the same high-standard of care, service and support. Property must be a single-family home and the loan-to-value based on the “as completed” value is limited to 75%.  The underwriting is based on slightly more conservative Fannie Mae guidelines requiring a 720 FICO score, etc. In case you are Canadian and looking for a Real Estate there then take a look at http://mirvishgehry.ca/location-and-amenities. Cost of improvements can be up to 50% of the “as completed value” which provides a great deal of flexibility to buy a distressed property and turn it into a solid investment.  Improve your return on investment by putting less cash into the property. Amcor Share Price will be a good place to start your investing business. This example illustrates purchasing a $400,000 property with and without a renovation loan. The ability to add the desired renovations into the value that the 75% loan is calculated on, lowers your cash investment.

Renovation_Loan

If you made it this far you are obviously interested in the details on how a companion maids cleaning service can work to purchase your next investment property.  As I am a CPA and licensed as a real estate broker I am uniquely suited to assist with even the most complex situations and would be happy to help.  Please give me a call today. clay signature black Clay Selland, President, Signet Mortgage Corporation 925-807-1500 x303 Clay@104.238.124.149

Loan Fee Increase to be Delayed – A Bit of Holiday Cheer!

Written by Clay on . Posted in events, Fannie Mae, Freddie Mac, Homebuyers, Uncategorized

  Fannimgresie Mae and Freddie Mac guaranteed fee increase will not go into effect in April as previously announced.  Rep. Mel Watt, the incoming director of FHFA, said late last week that he would delay an increase in mortgage fees announced in early December.  In a prepared statement, Mr. Watt indicated the delay of the loan fee increases “until such time I have had the opportunity to evaluate fully the rationale for the plan.” The planned increases included a sharp rise in fees from Fannie Mae and Freddie Mac for borrowers who do not have at least 20% down payments and credit scores between 680 and 760. This is good news coming at a time when rates have already seen an increase after the Fed announcement to taper off the purchase of mortgage-backed securities. We will keep a sharp eye on these developments after Mr. Watt is sworn in early January.

More loan fees: More expensive mortgages

Written by Clay on . Posted in Current Events, Fannie Mae, Freddie Mac

FannieFreddie Fannie Mae and Freddie Mac loan guarantee fees are going up again, and the cost is simply passed along to borrowers. Rather than reflecting the actual cost of doing business for Fannie/Freddie – this change is a penalty and raises the cost of a Fannie/Freddie loan under a “plan” to encourage private capital to the mortgage marketplace. The guarantee fees, or G-fees, for conventional mortgages guaranteed by Fannie and Freddie will increase an average of 11 basis points, according to the FHFA. The fees, which in the past were charged to cover potential losses by Fannie and Freddie, are being raised as part of an ongoing effort to lure private capital back into the mortgage market. In January 2012 and again in September 2012 Congress slipped a 10bps increase in the G-Fees under the same guise. The funds from the January increase go to the general fund and not to Fannie or Freddie at all.  It was done to offset a payroll tax break, putting the extra costs on home borrowers and allowed Congress to avoid having to repeal the politically popular payroll tax cut.  A bit slight of hand, don’t you think? Here is the quote from FHFA … “The new pricing continues the gradual progression towards more market-based prices, closer to the pricing one might expect to see if mortgage credit risk was borne solely by private capital,” FHFA Acting Director Edward J. DeMarco said. “The price changes provide better protection of and return to taxpayers, who are providing the capital support that keeps these companies operating. These changes should encourage further return of private capital to the mortgage market.” The problem is when increased loan fees hike the prices of Fannie and Freddie loans, that expense gets passed on to the consumer and make mortgages more costly. The opinions expressed in this post are mine … if you could use assistance navigating your options for residential financing, please give me a call. clay signature black